Back in the office after a 5-day break in Paris, which included a 2nd place finish in the Paris 6-hour relay race. Nice! Feeling very refreshed and in good spirits. It certainly pays to have short breaks on a regular basis.
Markets continue to be fairly quiet. ECB meeting is tomorrow.
The key change I did today was to implement a more rigid position management approach. Based on the points I wrote down last Thursday – this included:
- EMA10/20 crossover (xo) on 15M timeframe in “wrong” direction = automatic close
- EMA’s not aligned as anticipated on 5M timeframe 30 minutes after entry = likely to close
- EMA’s not aligned as anticipated on 1M timeframe 20 minutes after entry = likely to close (applied on short AUDUSD and EURGBP trades)
- Position in loss after three completed 15M candles = likely to close
- Once trade is +0.7R in profit, move stop to -0.2R (applied on short DAX trade)
Applying these rules today resulted in me closing four trades fairly quickly, and although I was “wrong” on four of the trades, each trade averaged a loss of only -0.38R. In contrast the single winning trade I had (short USDJPY) produced a profit of 1.4R. All in all, a scratch day.
As expected, the use of a more rigid position management approach allows for a reduction in stress throughout the day.